tv Power Lunch CNBC February 19, 2013 1:00pm-2:00pm EST
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it is time now for our final trade. the man with the new do kicks off. >> i've been talking about pfizer on the show. it's pennies away from the new 52-week high, multi-year high. i think she takes it out shortly. >> ennis. >> i might regret this, delta air lines. priced too cheap, american consumer on the higher end. >> a strong company, does it every day, walgreen's, beautiful chart right now. >> mr. weiss. >> wouldn't they get to vote on the stock? you said she. >> my stocks are all shes. >> i think it's going to go a lot higher here. >> all right. that does it for us. more fast at 5:00, following me on twitter. see if the dow get closer to that all-time high. >> "halftime" is over. "power lunch" and send half of the trading day start right now. >> all right, scott. thank you very much. there is pain at the pump.
yes, there is. gasoline prices creeping up massively in the past month. people starting to take notice and corporate america starting to get nervous. today stocks in danger of taking a bit of a gas hit. so is this the answer? we will hit the road with the tesla. phil lebeau is going to pull in to help us separate fact from fiction. heist of the year. have you heard about this? millions of dollars worth of diamonds disappear in a brazen theft overnight. sue is out. michelle caruso-cabrera joins us from the new york stock exchange. >> i don't have nif those diamonds. not yet. we'll start with the markets and march to the all time highs. dow jones industrial higher by 48 points, comfortable about 14,000, 14,029. so far the dow is up 7%. s&p also up 7% year-to-date. right now it is higher by nearly 8 points. 1527 is where it stands at the
moment. nasdaq no slouch either today. it is higher by 12 points, 3200, a gain of six year-to-date. midcap index hitting an all-time high, consumer staples an all-time high. s&p health care index, even though a number of insurers hit very hard. we'll talk about that as well. also dow transports, even with gasoline prices. >> all right. an oil shock. we're talking about prices at the pump and whether pricing gasoline prices will pour cold water on the stock market's rally. year-to-date oil us 3 to 5%. we're supposed to squeeze together and move forward. now on the right spots. i got here in plenty of time. >> you're out of breath. check this out. we looked at ar bob, gasoline, not a linebacker for crimson tide. economics reporter steve liesman is taking a look at what gasoline prices mean for the big
picture and the economic forecast going forward. first courtly reag lney reagan l stocks. >> according to ap, majority of americans paid monthly or semimonthly which most of us have seen paychecks in 2013 of lower take-home pay thanks to impact of tax increases. morgue staernl, $40,000 have 6.4 less discretionary pending. gas prices up $0.45 in a month to a national average of $3.75 according to aaa. now retailers january same-store sales may have provided a false sense. history proves it takes a for consumer spending to react to lower paychecks or higher prices. reports of a leaked e-mail between walmart executives citing lower take home pay and higher gas prices for a disastrous february roar retail
investors on friday but no analysts lowered. dollar stores lower, a behemoth in the last great recession. it will be the right inventory at the right price. it's possible we could see some tradedown when higher income americans feel a little strain, too. you might see a bump from the retailers. >> we'll hit a few other sectors that could take a hit from this in just a moment. first let's get a look at the big picture and how gasoline prices could affect the economy. >> the economic model, gasoline prices, one of the troubles facing consumers in the early part of this year. let's put some numbers on it. $10 a barrel increase is negative 0.2. it's double, that's where it comes from the decline in spending and hit to consumers' pockets and half the impact on
total investment according to eia. more to the energy bill and gasoline. consumer pay for both energy commodities, gasoline and diesel and energy services, electricity and natural gas. the gas part, that's the part that's been going up, the biggest part. the smaller piece, the utilities, they have been dock down. that's something of an offset, why the worst case scenarios courtney spun out may not come true. add up uncertainties, high gasoline prices, sequester, payroll taxes, security, growth, that line that goes through the green number, that's the range of forecast. you can see for the first quarter it's the largest, 3% to 1.5%. maybe lower if we get the sequester, payroll tax ends up worse than we thought. it's supposed to increase as the year goes by. two important off sets could be out there. housing is one. hiring and wages another. better housing values can make consumers feel more confident in
spending. hiring and wages could give them the means to do so. >> i can see how higher gasoline prices canredirect spending. isn't gasoline one of the constituents of retail spending and sales overall? >> absolutely. i tried, by the way, very carefully to look at retail spending, gas, compare gas prices, it doesn't really work. it's not an exact offset. when gas prices go up you don't see an immediate impact in department stores and other places. >> folks, thanks very much. michelle, back to you. >> you know, tyler, despite rising gasoline prices, here is something you wouldn't expect, airlines holding southwest, delta, all higher, just the opposite direction of gasoline prices. jetblue basically flat. dow transports hitting an all-time high despite rising gasoline prices. a snapshot of a few stocks ticking higher over the past month versus gasoline, fedex, ups, conway.
kenny, director of securities, can you explain this? >> i think there's a complete disconnect what gasoline prices and transports are doing. that will catch up. for the airlines, a lot of consolidation stories going on, adding excitement to that. really, transports being up, with gas and oil being up is a complete disconnect. >> what if they are both measures of an economy getting stronger. >> okay. if they are. i'm not sure that's what the measure is. i think the economy is struggling. europe is struggling for sure, even though we're the prettiest girl on the block and probably one people will look to, our economy is not anywhere yet robust by any stretch of the imagination. i think this will come back to bite us. >> we talked about transports specifically. what about the broader market if it keeps moving. >> look at the broader market today. for every reason it has to go lower. it hasn't. we've broken through 14,000. now if we stay above this and close above 15, 25, a slot take it to the highs of 1565
relatively quickly for no other reason than just the momentum play. >> got it. kenny, good to see you always. >>al a pleasure. >> back to you, tyler. health insurance taking a hit after humana said it would be be hurt by pay rates. bertha coombs with the story. >> not just humana, the rates outlined by the centers for medicaid and medicare services. they have a 45 day notice before they put it into effect. called the proposed cuts a crushing blow to medicare patients which will destabilize the popular private insurance program. cms assuming it will be negative over 2% and proposing limits on cost sharing in the form of a $30 per month cap per member. this on top of reimbursement rate cuts already part of the afraid annual care act which begins next year and new tax on
health plan in 2014. net effect on the sector, deutsche bank says medicare advantage rates could be down 5 to 6% and as much as 9 to 10% when you add in sequestration potentially. been among the best performers, up 9% but down led by humana, which saw 63% of revenues from medicare advantage last year. they are warning this morning they are closely monitoring the impact of the effect of these negative rates. that could impact earnings in 2014 and ability to grow membership. plans like humana and united will survive even if rules go in as proposed. they have capital and infrastructure. smaller plans may not be able to take such a big hit. rules will not be finalized until april 1st. no doubt pushback from industry on the hill. a fund manager says the outlook is for continued pressure on insurers in 2014.
of course, tyler, that's offset by the growth in medicare. 10,000 boomers turning 65 every day. >> yeah. we're watching this unfold. super interesting. thank you so much, bertha. shares of office depot and officemax, news they might be merging. because the two are struggling they are not expecting antitrust concerns. both are losing market share to staples, also up today nearly 10%. >> michelle, mondays are a big day for upgrades and down grades. we didn't really have a monday this week. did we, folks? we did. it wasn't a market monday. got it tuesday, get to it. our contributor joins us from chicago for a little bit of analyze this. stephens upgrading halliburton, increasing price target to $56 saying drilling efficiencies and improving rig counts allow north american operating margins to move higher. let's look at a one-month chart.
halliburton up over 14%. how do you like this one? >> no doubt i like the call. they talk about normalization, drill counts, act like it's a bottom up story. the problem is how they arrived there. look at a chart of halliburton compared to crude futures and the correlation is extremely high. i look at a chart of crude, it's going high, i like halliburton. it's as simple as that and some analysts overcomplicate it. >> we like the call but not the reason. moving on stifel nicolaus, upgraded to $23 saying first and foremost a management upgrade call. best buy shares have had a steep decline over the past year. there you see it down another 32% now at 17.41. they have been on the rebound in today's trading session. what do you think of this one. >> when i saw the call, i thought, can amy poehler have
the power to stop a pummeling stock. may be. a clever ad campaign can change things. the market declared brick and mortar stores dead. what's the other store. circuit city went out of business. there's only a few left. people are tactile to a certainly degree and i think people are going to like brick and mortar and stop from shoe rooming. i think best buy a decent buy, stop at 15. >> that sounds interesting. let's move to rchl bc capital, upgrading mgm to outperform to sect or perform, increasing the target to $16. rbc seeing catalyst to unlock further equity including expectations of dividend from mgm china. they think mgm can regain it's new license. shares up there over 21%. what do you think, jim? >> when i look at it, i think
the reasons they picked out were good. the china dividend and gaming license, that's good. when i look at a stock that had a 50% rally, 48% since mid november, i start to think people are not going to buy, rally so much. to me looks like the chart could go lower by a buck. >> thank you so much. had a little audio hit. one of the biggest stories, influential man on wall street, michelle will tell you about. >> absolutely. on wall street fighting it out with one of the most influential guys on wall street is fighting it out with one of the most popular stocks, apple. it's in court today and you will have a front row seat right after the break. google may be about to start up retail stores. what will they sell? would anyone go? what's it going to mean for the stock? the man who quite literally wrote the men on google is here on the floor of nyse. look at him, he looks great coming up to join us.
welcome back to "power lunch." i'm josh lipton. group one automatic sputtering today. the company owns and operates car dealerships, u.s. locations mostly in metropolitan areas in 15 states. reported fourth quarter epps of $0.70. the street wanted to see a $1.19. company ceo talking about strong growth in the fourth quarter, 19% revenue growth. he also said missed some
opportunities to maximize profits via complete leveraging of cost structuring. investors unhappy with that miss, stock down 7.5%. josh, back to you. >> thank you so much. einhorn and apple taking their fight to court over return of cash to apple shareholders. the stock down again today and apple lost about 20% of its market value over the past three months. kate kelly is at the courthouse for us in new york city. kate. >> reporter: thanks, tyler. we're just about an hour away from what could be a contentious courtroom showdown, einhorn, founder and apple, inc. they are duking it out over a proposal in the proxy statement that would do away with charter right to issue preferred shares of stock. einhorn seeking an injunction to block the vote on that measure at apple's meeting february 27
wants apple to issue a class of shares to provide investors like him with additional value. apple is his largest holding of late and its fall in the fourth quarter accounted for damage to his portfolio in that quarter as well. apple sitting with $137 billion in cash on its balance sheet and he argues that's stockpile indicative of depression era mentality. apple is defending noting other investors calpers. blocking would eliminate other beneficial measures. would establish majority voting for investors on the board. leading into the hearing things have gotten a little snippy. apple said it would incur millions of dollars in printing and other costs if the proposal was delayed. einhorn fired back with his own calculation. he said those costs would amount
to .3 of a penny per outstanding share of apple stock and nobody should worry about it. >> we'll see about that. thanks very much, kate. apple's pain has been google's gain. google stock hitting $800 a share for the first time. remain confident to increase profits. milestone comes five years after google first hit $700. stock has risen 35% since larry page replaced schmidt in 2011. what a perfect day to have ken auletta, considering one of the leading experts on google and authored the book "googled, the end of the world as we know it." today in the business page, ken wrote the article, can it disrupt the tv business. he's here to talk beauty this but first google. they are talking about opening stores, retail front. what would they sell?
>> unlike apple they don't have enough products to sell. google is so quirky they might say, hey, we'll make it a future oriented store. they have no experience in retail selling. they tried it several years ago with cell phone. they were going to sell their own cell phone and retracted that soon after they opened. they have no experience in sales to direct couples. >> i see apple having done it very successfully. disney -- sony -- >> in the old days disney had stores and sony had stores and they flopped. apple comes in and creates a new idea, stores can be successful if they are cool. other people say we should have a store, too. it's great advertising. >> apple more per foot than any other retailer in the city. >> profitability and great products. the question with google is, are they going to have enough products to sell in the store. >> you have spent a lot of time
on another bigger question about who is going to win, the distributors or the content creators. people have been talking about this now for decades. we see netflix creating house of cards. we see comcast buying nbc universal. are those two pieces of evidence proof that contents is now king? >> no. because content takes different meanings. for instance, if i'm an engineer at facebook and i create an app or i create the face of facebook, and i get to spend -- and my daughter gets to spend an hour a day on facebook, is that content? i would argue it is. it's an hour they are not spending on nbc. so content -- the definition of content creator has changed in the digital age. b, if i have content like ipad, iphone, they are a new distributor to rival comcast. so the question of who is the
distributor has also changed in the internet age. >> they have almost merged into one thing, totally vertical integration. >> i think what's happened, the other merger, the digital world which had disdain for the old content world has come to realize -- netflix is a perfect example. we need professional content in order to have people come to our platform, youtube, google, et cetera. >> tell me about what you wrote about. >> over the air broadcast is free. therefore, we've created this new technology the size of a dime. a little antenna like thing. we will get your signals and therefore so broadcast television roughly 30 channels. now in new york, by the end of the year barry said able to reach 75% of the country. it caused alarm in the broadcast community so they sued diller. the cable community is also alarmed by it. >> why?
>> my cable bill is almost $200 a month. >> you say that like it's a bad thing on a comcast set. >> it's a lot of money. the question is it good. if i can get that for $80 a year, right, which is what they are offering. i'm not going to get the choices. >> you don't get cnbc, espn. >> hbo, et cetera. that's a real negative. on the other handf i'm pour where i can't afford it, that may be a bargain. what's happened is the lawsuits started, broadcast networks said you're stealing our copy right. you can't do that. they won in the first district court case and now it's on appeal. what happens with that, it's critical. >> broadcasters? >> if they lose this case, it's a problem for them. it harms their business. you do not have to take away 100% of their business. if you take 10 to 20% --
>> they will still watch ads. they can't be measured. >> the question is will they watch ads. they will send you the signals but you can watch on any device you have, on your laptop, iphone, et cetera, apple tv, can you skip ads. >> a pleasure to have you on. good luck with the new website. tyler. >> thank you very much. hedge funds known for paying top dollar for top investors making top choices. where is that money going right now and should you follow it. is it the smart money? that's next. ♪ [ male announcer ] it was designed to escape the ordinary. it feels like it can escape gravity. ♪ the 2013 c-class upe. ♪ starting at $37,800.
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in case you haven't noticed, deals are back given the recent round of m and a activity. where are hedge funds putting their money now? are they playing deals? here on cnbc with what's hot, head of investments at city private bank. welcome back. good to have you with us. i suppose the merger arbitrons are investing in these deals one way or the other. are other kinds of hedge funds playing the game or not. >> hedge funds are playing several different value creation mechanisms. obviously they are looking for companies with high intrinsic value, looking for companies recovering but also looking for companies that are potential
takeouts in the event you see activity pick up and we are seeing that. >> you wrote in one of the notes there is a kind of rotation. there we're looking at performance of hedge funds. why don't i pause here and ask a question out of order. for the month of january, i see on numbers you supplied us that the january returns for an awful lot of the categories of hedge funds were lower than what i could have gotten at 18 basis points in s&p 500 index fund. are they doing well or not? why would i pay their fees to get that kind of submarket performance. >> the idea that all hedge funds should be equal to equity markets is a misnomer. obviously these strategies are not directly tied. we look at everything on volatility basis when we look at hedge fund returns. if they give you exposure to market activity, risk with volatility, consider that to be a positive. we look at january as a particularly good month for hedge funds. >> on a risk adjusted basis, it was a particularly good month?
>> that's correct. of course, when you're building portfolios, you want to add diversification, you don't want to take on risk. you want to play in macrotrades, all of which are not correlated necessarily to the equity markets and that's why you add them to portfolios. >> so many people, individual investors are going with alternative strategies to have it as part of a diversification program. hedge funds you point out in your notes have been moving, or did in the fourth quarter, away from a lot of technology names and into, broadly speaking, some blue chip financials but also into japan. explain. >> yes. there's several moments under way. into google, microsoft, a ton happening with google and apple right now. if you look closely at other trends, you see they are getting into the financials again. in the case of bank of america to play recovery in the u.s. housing market. in the case of citibank to deal with the recovery that's taking
place in the global economy and the case of aig obviously improvement in their balance sheet and insurance markets globally. all of these undervalued. we see hedge funds moving in rapidly. in the case of japan, a different story. we're seeing the government take on different actions to reinflate their economy and drive the end -- >> lower levels. >> equities to higher levels as it comes easier for japanese companies to export. >> david, breaking news. i'm sorry to cut it short. have you back soon. citi's private bank. >> apple was hit by the same attackers that attempted to break into facebook's network. the company identified malware was on some of their systems as well. apple said it didn't lose any data. these are apple computers, apple mauiee computers hit by the same kind of hacker attack that facebook said was affected. it got hit by last week.
a little how this worked. hackers set up a honey pot, software developer site lots of companies go to. when they went to this site, the job of vulnerability, programming language vulnerability that had bee out there a couple weeks ago hit multiple companies, infected computers and hackers tried to use that to gain access to corporate data. apple says it's releasing a patch today. read a little of the statement here. to protect users that installed java, today releasing updated java removal tool that will check the systems and remove malware if found. i've spoken to someone familiar with this story as it continues to develop. this is a cat and mouse game. java had a lot of vulnerabilities out there. they are continuing to try to exploit it. it's a commonly used language. this isn't the end of the story. apple likes to point out when this happened a couple weeks ago, it shut down java 6,
something they can do in os 10. this story continues to develop. as i hear more, i'll be back with you. guys, back to you. >> john, it's michelle here. for years it seemed we talked about how microsoft a much more vulnerable to attacks and cyber attacks and viruses, et cetera. we debated at the time whether apple was better or much smaller at the time, less of a target and not involved in enterprises. as we hear this result or news now, do we have any clarity about that question we asked for so long? >> michelle, it's sort of the great equalizer. it was designed to work across all different platforms, windows, mac, et cetera, operating in the web browser, something developers often use to build software. a lot of day traders use it as part of their trading tools. it's meant to be cross-platform, no specific windows or mac, all sorts of systems were affected which is why it was such a big deal when this vulnerability was discovered a couple weeks ago.
>> so no basically. all right, john. thank you. metals market closing. sharon tracking the nymex. sharon. >> gold prices down a few dollars, michelle but able to hold above the 1600 an ounce level for now. some weakness in the gold market. the ability to stay above this important psychological level is key. a dip below there, a close below could bring prices down to 1584 an ounce, perhaps to a previous low of 1525. we're also seeing a slide in the silver market. the same story there as silver is below $30 an ounce for the second straight session. a lot of speculative long positions pulling back those in the silver market as well. copper meanwhile, copper has dipped to a three-week low. the fact china does not have a lot of buying interest in the copper market, it appears that is something signaling weakness to copper traders. white hot? platinum and palladium, supplies
particularly in south africa, the reason we're seeing those metals higher. tyler, back to you. >> sharon, thank you very much. home builder sentiment slipped in february, the tiers time in a year. diana olick has the details. diana. >> housing bears out of hibernation as sentiment fell one point to 46 in february. that after climbing from 25 at the beginning of last year. 50 is the line between positive and negative. of the three index components, current sales 1 points, sales expectations one point, buyer plunged four points. sentiment and housing starts go hand in hand. we get housing starts out to 8:30. watch out for that. recovery watch, recovery watch map to see how your local market is doing. you can find that on
realtycheck.com. >> phil lebeau monitoring the tesla, seeing if it does what they say it does. we'll check in with phil in a few minutes time. i get one view of my bank and brokerage accounts with one login... to easily move my money when i need to. plus, when i call my local scottrade office, i can talk to someone who knows how i trade. because i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade. awarded five-stars from smartmoney magazine.
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bob pisani on the floor of new york stock exchange. stock market going up because it's in a positive feedback loop. what's that mean? the s&p futures. everybody wants to own stocks so they keep going up. it's that simple. this morning, we move up to new highs on the s&p 500. what was going on? people buying calls, technical moves to the upside. it's as simple as that for the moment. high, industrials, transports, russell 2000, s&p, midcap, all at historic highs. what's going to break the feedback loop? it won't go on forever. a lot of people thought walmart last week when we had that leak, low- to mid-income consumer might get hurt by higher taxes going on. it hurt walmart but hasn't hurt the overall market. bmo became the first company to lower walmart's expected earnings. they are going to report thursday. so far they are the only one i've known watching them. we're expecting 9% increase eps
guidance. a lot of stuff we talk about, put call ratio, seasonal trading, trading months of the year, certain times of the year, a lot of this was all pioneered in the early days in the '70s and '80s by marty's wife. a passing of a real giant. >> i was sad when joe concernan it on "squawk." >> rick santelli at the cme. >> as the dow crosses 14,000 market a little pressure in treasuries. as you look at 10s and 30s, pretty much sideways markets. they have been that way with bouts of selling. you look at the currency market, pound versus dollar. how much lower? open up the chart, we're at the lowest level since june on the
pound versus the dollar. let's stick with that, look at the euro trade. as you see going back to october of 2012, we're very close to testing 16-month highs on the euro versus pound. seems to be between big currency with no place to hide. tyler, back to you. >> thanks very much. let's go to josh. >> one stock rocketing higher rock wide holdings, u.s. chemicalmaker looking to sell unit, large buyout forms. this according to reuters. they have hired lizard to run the auction which could get $1.7 billion. ion batteries, smartphones and tablets fueling demand. rockwood up this year.
>> speaking of batteries and efficiencies, how efficient is the tesla electric car, one week after controversy erupted about range and performance phil lebeau taking his own tess drive, going up the road in connecticut. >> tyler, we are pulling into the tesla super charger station in milford, connecticut. last time at one of these charging station 300 miles ago in delaware, now moving into the charging network. we will be recharging. the reason we have this point of view to show you what we have here is the instrument panel in the front. as you take a look at how far we've driven today, the reason i'm showing you now, it guess to the issue of range anxiety. a lot of people asking me, do you have range anxiety driving
model s. no. there shouldn't be range anxiety if you know how far you're going. as we're driving along we are able to monitor how many miles. the range is 260 miles if fully charged. when charged up to 263 miles. we made it here in 203 miles. we still have another 43. we are coming in at about 240 miles, a little less than what was indicated when we charged up. keep in mind, we were not driving efficiently, i was gunning it, over 70. if you're not driving efficiently you won't get the full range. now that we're here, we're three-quarters of the way to our destination, which is tessly store outside of boston. when we get there, we will have completed our drive. so that's a little bit of an indication of what it's like driving model s going up from d.c. to boston. guys, back to you. >> phil, a couple of questions, i guess the charging anxiety
would have something to do with whether you're going to be close. how do you know whether the charging stations are, whether they are opening, functioning. if you get to a place and machines were down, you'd be out of luck. >> they are all open. this is tesla's network. it's free to recharge and they are always here. there's not any time you get to a rest stop and they are closed. you're on the highway, tyler, almost every rece stop never closes. when you look at this panel, it shows you how far to the next station. you can enter it in here. kept me posted the entire time. we're here. as we were driving it was saying 45 miles, 110 miles, however long it might have been. that's how you know how many more miles you have to go until you hit your designation. >> it tells you where the charging stations are. second question, how long does it take to recharge from where you are now in the charging level all the way up to topping
it off, so to speak? >> it depends. you know, if you wanted to top it off, you could probably go up to an hour. we will not need a full 265 miles of battery to make it to the final destination of boston. we may only charge 45 minutes. the idea, you should top it off. depending how much battery you use, that will show you how much more to charge up. in the last place we were out, we charged about 50 minutes. in this instance we might kmarnlg 45 minutes. have you to manage where you'll be driving the vehicle that day. >> when you say only 45 minutes. if i want to get somewhere, i don't want to stop 45 minutes to refill my tank so to speak. maybe i should point out, maybe the lebeau effect, the stock has been rising all day long as you have been driving. >> i don't think it's the lebeau effect. remember, they are reporting
fourth quarter earnings, full year earnings tomorrow. what's key about this report, tyler, is what the ceo says about two things. one, what's going on in terms of cash flow. they have already said cash flow positive. what's the growth rate there. two, what's going on in terms of production for 2013. if they can build 20,000 of the model s as they have said, i think you'll see a positive reaction on wall street. >> good looking car, phil. good looking car. >> fun to drive. i have to admit, it was fun to drive. >> good looking man. bmw recalling vehicles due to an electrical failure, the popular models z4 two-seat. michelle. >> [ male announcer ] any technology not moving forward
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out with fresh figures on how to fix the nation's deficit. will it cost you your plans for retirement. joining us from the white house chief white house correspondent john harwood. >> we've had an exchange of public positions by the president, leaders in congress and simpgs and bowles. the president making an argument for avoiding the sequester, trying to put pressure on republicans, making the case he's willing to make further cousin entitlement programs. >> i am willing to cut more spending that we don't need. get rid of programs that aren't working. i've laid out specific reforms to our sbilgsment programs. they can achieve the same amount of health care savings by the next decade as reforms proposed
by bipartisan simpson-bowles commission. >> they are telling me in light of the impact of the looming retirement of baby boomers, which is going to hugely increase the number of people on medicare rolls as well as medicaid which pace for a nursing home we need more than the president want to accede to. >> we're going to have to push the white house on health care, republicans on revenue. what we've tried to do is make enough cuts in health care to slow the rate of growth on per capita basis to the rate of the economy. in our opinion that takes about $600 billion to do over a 10-year period. >> the challenge, of course, is going to be getting an fkt effective push on both sides. republicans on revenue, they are saying no more. democrats on entitlement cuts. they are saying not so much as you want.
we are right now less than two weeks away from the sequester, which is likely to hit. we'll see when that gets results, if it does. >> john harwood, thank you very much. a major diamond heist has authorities all over the world on the lookout. plus the cost of coffee, a diamond in its own way is about to change. more power in two minutes. that 2:00 felt like 30
a diamond heist that could be a scene straight out of a movie. think oceans eleven, taking minutes to pull off. robbers armed and disguised as police officers, stealing 50 million in rough and cut stones at the brussels international airport. the gems were being loaded onto a plane bound for switzerland. it was monday night, no one was harmed. as far as we know the diamonds are missing. power rundown with michelle
caruso-cabrera and amin. start with the "new york times" reporting chinese military playing, surprise surprise, big role in recent hacking attacks on u.s. companies. how concerned should we be? this feels like a national security threat frankly. >> absolutely. when you talk to security companies in washington, this is a real threat to economic dominance in the world. so much data stolen out of u.s. companies at the ter, terabyte. it was allegedly stolen from their american counter-parts. that's something they need to be worried about. >> i agree with everything he just said. i would add the following. i heard people on tv when the story broke and people on twitter saying, well, the u.s. hacks china as well. this is different. this is the chinese military helping their state-run organizations steal things like blueprints, pricing documents,
business plans, manufacturing processes. i do not believe that our u.s. government is helping the likes of ge and 3m and everybody else steal from the chinese. it's not equivalent, asymmetric list. >> the detail, the name of one of the hackers in china. they called him ugly gorilla in that report. >> the other one was called super hard. >> i'm not going to get into that. anyway, you should read the report in it's full entirety. >> u.s. companies fighting back against president obama's new health care law. financial times reporting a few employers considering cutting hours of workers so they are not qualified as fulltime workers, rather than in insuring their staff. and other things, paying the penalty instead of paying to in sure. we could have seen this coming, couldn't we? >> there's gambling in casablanca, tyler. i can't believe it.
look, remember when they started prescription drug plan for elderly seniors. before medicare didn't cover that. part d. do you know what a good chunk of the cost was? the government wrote checks to corporations so they would not dump seniors from retirement plans if they had been covering medicine already. this was so predicted, chronicle of a big gap in the plan foretold. >> eamon, many people out there believe after all this could end up with fewer people covered than more people covered. i don't know if you subscribe to that but it's an argument out there. >> this is such a big and sprawling new law, hard to they will what the unintended consequences will be. you can rece assured there will probably be some consequences. i agree with michelle, foreseeable. if you're writing a law, back to drafting. you should make the fine more expensive than the behavior you're trying to encourage, so that way people don't take the fine and avoid doing the
behavior. >> eamon, i've gotten so garrulous, only michelle on this one. the first time in recent history the pope resigning, recent history like 600 years, leading the vatican to come up with a pension package. he runs a big corporation. he's reportedly going to get, michelle, $3,000 a month. is this a fair amount? that's austerity. >> it's completely fair. when you become a priest, you take a vow of poverty. he should lead the italians toward austerity, be a model of what they need to achieve in rest of europe. >> thank you very much. michelle, eamon, appreciate your time. let's talk about coffee prices bucking a trend. we'll tell you about it next. [ kitt ] you know what's impressive?
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